Township board says ‘no’ to over-65 exemptions in 2009-10

Published 7:00 pm, Tuesday, April 21, 2009

THE WOODLANDS - Residents who are at least 65 won’t see any exemptions in The Woodlands Township for the 2009 tax year, but the issue will be up for discussion again in 2010.

A majority of TWT board members voted Wednesday morning in favor of an exemption for residents 65 and older, but they voted not to implement it now because they are tackling the township’s budget for the first time.

The exemption conversations began earlier this year when resident Paul Martin presented board members with a petition supporting it. However, the township can’t be making its decisions based on a petition signed by 1,129 people, several board members said.

“We haven’t had any exemption for the community associations; and this isn’t a reduction in taxes, it’s a reallocation of taxes,” board member Alex Sutton said. “… There are 56,000 other people we still haven’t heard from. We can do this farther down the road when we have some history.”

Board member Claude Hunter pointed out The Woodlands is in a unique situation and governance is transitioning this year from The Woodlands Association and The Woodlands Community Association to the township.

“There aren’t cities that did this (exemption) without knowing what their budget could be and would be,” Hunter said. “… We told the community we would replace assessments dollar for dollar, not give an increase to the young and a decrease to the old.”

In addition, Hunter said many Woodlands residents over 65 have the means to pay their property taxes. According to Montgomery County Tax Assessor/Collector J.R. Moore, the average home owned by a person 65 years and older is valued at $257,673.

Resident John Risher told the board that some of the residents who signed the petition are living in homes valued at $800,000. If the petitioners would have spoken out against assessments rising, Risher said, he may have supported them, but he doesn’t see the need for people to “shirk their responsibility.”

“They enjoy the services,” Risher said. “… Should a young family living in reasonable means support someone who can clearly afford their taxes?”

But Martin argued that not all of the signers are over 65 years old and those who are volunteer in the community. He said the approximately $70 exemption would only cost other residents $5 to $10 more.

“My concern isn’t for those who are 65, but for those who are 66 to 100, who are widows or who are on fixed incomes,” board member Tom Campbell said.

Montgomery County, the Montgomery County Hospital District, the Lone Star College System and all municipalities in the county, excluding Montgomery and Panorama Village, offer exemptions on some level. School districts are required to give homestead, 65 and older and disability exemptions; and several municipal utility districts also grant exemptions as well.

But board chairwoman Nelda Blair warned that, once an exemption is set, changing it up or down would be difficult.

“I think we should say we’d like to grant an exemption … but not now,” Blair said.

The township was forced to make a decision on whether to grant an exemption by June 30 so the tax office could tell officials how much revenue they can expect, based on appraisals, for the upcoming budget. Entities, including The Woodlands, must approve a tax rate and budget by the end of the summer because the tax year begins Oct. 1.